Kcell Grows Q1 Profits 2.5%

Kcell recorded a net income in the first quarter of KZD 13.66 billion, up 2.5 percent from KZD 13.33 billion in the year-ago quarter. Revenues were KZT 43.05 billion, up 4 percent from KZT 41.40 billion a year earlier as voice revenues rose 1.1 percent to KZT 33.29 billion, data revenues grew 37.9 percent to KZT 5.67 billion, and revenues from VAS went up 1.7 percent to KZD 3.92 billion. Other revenue decreased 66.8 percent to KZT 168 million owing to the decrease in sales of handsets and USB modems. EBITDA, excluding non-recurring items, grew 1.2 percent to KZT 23.73 billion but EBITDA margin slipped to 55.1 percent from 56.7 percent in Q1 2012. Free cash flow decreased to KZT 11.03 billion from KZD 15.23 billion due to an increase in capital expenditure and changes to working capital. During the quarter, Kcell added 310,000 new subscribers to bring its total base to 13.8 million.